By Yihui Xie and Jack Ryan

(Bloomberg) — Gold (GC=F) headed for its second consecutive weekly loss as the US moved closer to trade deals with China and other major partners and a cease-fire between Israel and Iran dented demand for havens.

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Bullion fell 1.2% on Friday, taking the weekly drop to about 2.4%. The precious metal has generally been confined to a narrow trading band this week, although on Tuesday it slumped as the Middle East rivals honored a ceasefire agreement after almost two weeks of warfare.

The truce has signaled a return to risk-on market sentiment. That continued into Friday after Commerce Secretary Howard Lutnick said in a Bloomberg TV interview that the US and China have finalized a trade framework and the White House has imminent plans to reach agreements with a set of 10 major trading partners. Still, details of any potential deals are vague.

Bullion remains up more than a quarter this year, and is about $200 away from its record high reached in April. Along with geopolitical and trade tensions, it’s been supported by robust central-bank buying and increased optimism the Federal Reserve is preparing to resume monetary easing, with lower rates typically a positive for the non-interest-bearing precious metal.

Gold was down 1.2% to $3,289 as of 10:08 a.m. London time. The Bloomberg Dollar Spot Index was flat. Silver fell. Palladium was steady, up 7.4% for the week. Platinum plunged 4.2% after hitting the highest level in more than a decade on Thursday.

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